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S&P Enterprises has provided data from the first three months of the year. The Controller has asked you to prepare the Cash Budget and the related Schedules for Expected cash collections and Payments to suppliers. Data Actual January and February and expected March sales: Cash sales Sales on account Total Sales Accounts Receivable Collections: Month of sale. Month following sale Second month following sale Uncollectible Accounts payable for inventory purchases, March 1 balance Budgeted inventory purchases in March Inventory payments: Month of purchase Month following purchase Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp); Other budgeted cash disbursements in March. Equipment purchases, Dividends to be paid Minimum cash balance to be maintained March 1 cash balance. March 1 outstanding borrowings March 1 interest due. $ 14,000 $ 2,000 $10,000 $ 11,500. $0 $0 January $ 1,600. 25,000 $ 26,600 $ 12,500 $ 3,200 158 60% 22% 38 $ 10,500 $ 23,500 February. $ 3,750 30,000 $ 33,750 60% 40% March $ 5,100 40,000 $ 45,100 The company has a line of credit available to bolster the cash balance as needed. When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules.

S&P Enterprises has provided data from the first three months of the year. The Controller has asked you to prepare the Cash Budget and the related Schedules for Expected cash collections and Payments to suppliers. Data Actual January and February and expected March sales: Cash sales Sales on account Total Sales Accounts Receivable Collections: Month of sale. Month following sale Second month following sale Uncollectible Accounts payable for inventory purchases, March 1 balance Budgeted inventory purchases in March Inventory payments: Month of purchase Month following purchase Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp); Other budgeted cash disbursements in March. Equipment purchases, Dividends to be paid Minimum cash balance to be maintained March 1 cash balance. March 1 outstanding borrowings March 1 interest due. $ 14,000 $ 2,000 $10,000 $ 11,500. $0 $0 January $ 1,600. 25,000 $ 26,600 $ 12,500 $ 3,200 158 60% 22% 38 $ 10,500 $ 23,500 February. $ 3,750 30,000 $ 33,750 60% 40% March $ 5,100 40,000 $ 45,100 The company has a line of credit available to bolster the cash balance as needed. When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 17E
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2 3 Expected cash collections: 4 March cash collections 5 March collections on account: 6 January sales 7 February sales 8 March sales 9 Total cash collections. 10 11 Payments to suppliers: 12 Accounts payable for inventory purchases, beginning balance 13 March purchases 14 Total cash payments 15 16 17 18 19 Cash balance, March 1 20 Add cash receipts: 21 22 Total cash available 23 Less disbursements: 24 Payments to suppliers 25 Selling and administrative expenses 26 Equipment purchases Collections from customers Show Transcribed Text www.T 13 March purchases 14 Total cash payments 15 16 17 18 19 Cash balance, March 1 20 Add cash receipts: 21 Collections from customers 22 Total cash available 23 Less disbursements: 24 Payments to suppliers 25 26 27 Dividends paid 28 Total disbursements 29 Preliminary cash balance. 30 Financing: 31 32 Selling and administrative expenses Equipment purchases Additional loan Loan repayments Interest A 33 34 Total financing 35 Cash balance, March 31 36 S&P Enterprises Cash Budget For the Month of March S&P Enterprises Cash Budget For the Month of March B C
Transcribed Image Text:2 3 Expected cash collections: 4 March cash collections 5 March collections on account: 6 January sales 7 February sales 8 March sales 9 Total cash collections. 10 11 Payments to suppliers: 12 Accounts payable for inventory purchases, beginning balance 13 March purchases 14 Total cash payments 15 16 17 18 19 Cash balance, March 1 20 Add cash receipts: 21 22 Total cash available 23 Less disbursements: 24 Payments to suppliers 25 Selling and administrative expenses 26 Equipment purchases Collections from customers Show Transcribed Text www.T 13 March purchases 14 Total cash payments 15 16 17 18 19 Cash balance, March 1 20 Add cash receipts: 21 Collections from customers 22 Total cash available 23 Less disbursements: 24 Payments to suppliers 25 26 27 Dividends paid 28 Total disbursements 29 Preliminary cash balance. 30 Financing: 31 32 Selling and administrative expenses Equipment purchases Additional loan Loan repayments Interest A 33 34 Total financing 35 Cash balance, March 31 36 S&P Enterprises Cash Budget For the Month of March S&P Enterprises Cash Budget For the Month of March B C
S&P Enterprises has provided data from the first three months of the year. The Controller has asked you to prepare the Cash Budget and the related Schedules for Expected cash collections and Payments to suppliers. Data Actual January and February and expected March sales: Cash sales Sales on account Total Sales Accounts Receivable Collections: Month of sale Month following sale Second month following sale Uncollectible Accounts payable for inventory purchases, March 1 balance Budgeted inventory purchases in March Inventory payments: Month of purchase Month following purchase Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp) Other budgeted cash disbursements in March Equipment purchases. Dividends to be paid Minimum cash balance to be maintained March 1 cash balance. March 1 outstanding borrowings March 1 interest due $ 14,000 $ 2,000 $ 10,000 $ 11,500 $0 $0 January $1,600 25,000 $ 26,600 $ 12,500 $ 3,200 February $3,750 30,000 $ 33,750 158 60% 22% 38 $ 10,500 $ 23,500 608 40% March $ 5,100 40,000 $ 45,100 The company has a line of credit available to bolster the cash balance as needed. When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules.
Transcribed Image Text:S&P Enterprises has provided data from the first three months of the year. The Controller has asked you to prepare the Cash Budget and the related Schedules for Expected cash collections and Payments to suppliers. Data Actual January and February and expected March sales: Cash sales Sales on account Total Sales Accounts Receivable Collections: Month of sale Month following sale Second month following sale Uncollectible Accounts payable for inventory purchases, March 1 balance Budgeted inventory purchases in March Inventory payments: Month of purchase Month following purchase Total budgeted selling & administrative expenses in March (including depreciation) Budgeted depreciation in March (included in total selling and admin exp) Other budgeted cash disbursements in March Equipment purchases. Dividends to be paid Minimum cash balance to be maintained March 1 cash balance. March 1 outstanding borrowings March 1 interest due $ 14,000 $ 2,000 $ 10,000 $ 11,500 $0 $0 January $1,600 25,000 $ 26,600 $ 12,500 $ 3,200 February $3,750 30,000 $ 33,750 158 60% 22% 38 $ 10,500 $ 23,500 608 40% March $ 5,100 40,000 $ 45,100 The company has a line of credit available to bolster the cash balance as needed. When preparing budgets, the company maintains their data on a separate sheet from the actual budget and schedules.
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